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Unless I'm misreading, the OP sure seems determined to do this and to risk $100K? That is an enormous amount of money to risk and I don't see the point. What's in it for you to send them all that hard earned money? What guarantees are there? And why should you jump through hurdles? Anyone can set up a website to collect money.

This sounds like a big scam to prey on the unsuspecting. I simply don't have the time to delve into something that offers no substantial value.

Wouldn't that be a insane amount of work?(that alone would be a disadvantage)If these are typically small loans like between 2500/5k.So you would have lets say 30 loans out (100k)and lets say 5 repayment pay structure to close the loan(that is a lot happening)and then you got to monitor who has been late and worse those who default(i don't know how it works so i might be out to lunch)What do you do if a third of your portfolio is missing payments?This seems like a con's dream.
I personally would never loan any money to someone i have ever meet(these are people that can't get a loan from a bank/cc/family/friends ect)that alone would be enough for me to not want to partake.
You the lender has to ''jump'' through hoop's,Shouldn't it be the borrower that should be doing the hoop jumping(what do they do)
Has anybody ever read or heard about anyone making a fortune doing this(p2p)my guess is i doubt it.
I would rather buy 5 canadian blue chip dividend companies with a 100k...........what does a ''securitized'' p2p loan even mean?

I was reading a lending club none dated review that stated the default rate on thier site is not really accurate.

The loans are growing fast if in the prior year there were half the number of loans as in the next year & they state a 3% default rate the actual default rate is most likely be a lot higher because it is based on the total number of loans.

A credit union is kinda like Peer-to-Peer lending & is most likely run more with a lot more disapline & based on a method that is a lot more solid then most investors could achieve.

The rates of return posted on their website are NET of fees and defaults. For those uber analytical types here's how they calculate the numbers:

How We Measure Net Annualized Return
Net Annualized Return is based on funds actually received each month, net of our service charge of 1%. We make deductions to account for any defaulting loans. We refer to these deductions as "default status" amounts. As explained below, default status amounts are equal to the outstanding principal amount of any Note for which the corresponding member loan is 120 days or more delinquent.
Why We Display Net Annualized Return

Net Annualized Return reflects only actual funds received to date. There is no forward-looking projection of performance. Therefore, we believe it gives you a more accurate measure of the performance of your total investment versus considering only the stated interest rate on the Notes you have purchased.

How We Calculate Net Annualized Return

Net Annualized Return is the output of a formula where the numerator is composed of interest received, plus late fees received, minus the 1% service charge paid. If a Note does not get paid, the interest received that period will be zero. If a Note is in "default" status, we subtract the entire principal amount of the Note from the numerator. Next, we divide this result by the outstanding principal amount of the Note for that period. This yields a fraction for the period.

This calculation is performed for each period, taking into account all interest received, late fees received, service charges paid, and all defaults relative to the principal outstanding in each period. Doing so means we account for performance on investments that begin in different periods, have different payment dates, and so forth. The final step in the calculation involves annualizing the result. We take the sum of (1 + the dollar-weighted average performance for all periods), raise it to the 12th power, and subtract 1. This result is the Net Annualized Return, which is expressed as a percentage.

To be included in the Net Annualized Return calculation, a Note must have been issued more than three (3) months prior to the calculation date.

Example of a Net Annualized Return Calculation
The calculation for a group of Notes can be illustrated as follows. Assume, for example, that an investor purchases 50 Notes, each with an original principal amount of $200 and each bearing interest at 8.00%. Assume that all of the member loans corresponding to the 50 Notes fully perform for 12 months. The Net Annualized Return at the end of 12 months would be 7.83%.

Now assume, for example, that an investor purchases 50 Notes, each for a principal amount of $200 and each bearing interest at 8.00%. In this example, assume that 45 of the member loans corresponding to the 50 Notes fully perform for 12 months. Assume that five member loans fully perform for the first two months they are outstanding, but in the third month, cease performing and enter default status in the seventh month. Because these five member loans have entered default status, we subtract the principal amounts of the five corresponding Notes in the monthly calculation for the seventh month. The result is a negative number, and the Net Annualized Return at end of 12 months would be -4.19%.

The Limitations of Net Annualized Return
Net Annualized Return is just one way you can calculate the return on funds you have invested through the Lending Club platform. We think it is the most useful and accurate way to measure investment performance because it takes into account both our service charge and delinquent corresponding member loans. However, there are other methods for evaluating the historical or potential investment return on fixed-income securities that you could choose to use instead, and you may want to consider such methods as well.

Net Annualized Return can be expressed as this formula, for any period from month 1 to month N, where i is the recurring monthly period:

Net Annualized Return measures the performance of our investors; it does not reflect the performance of loans held by Lending Club as an investment. Lending Club Notes are only offered by Prospectus.

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